Simple trading strategy: A Bet in your Favor

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Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:03 pm

Forum transfer: Submitted by User on January 26, 2009 - 01:20.

I have developed a forex system that intends to give me an edge of 51% (including spread) winning trades. In order to maximize my chances, I choose a currency and simply chart the MACD on the one minute chart. If the historgram is negative, I buy, if it is positive, I sell.
The reasoning behind this is that the one minute chart is usually just market chatter. Therefore a positive histogram indicates a random upswing without saying anything about a trend. In the long run, positive and negative histogram bars even out and the average positive price is higher than the average negative price (when seen over 1000s of bars).

To avoid having to stare at the screen all day, I simply set a limit and stop and let the position run itself. It is important that stop and limit be large enough to not be hit during normal cycles on the minute chart (if we have non trending markets). In order to turn the "bet" in my favor, I set limits higher than stops. The result is still an even 50% stop hit, 50% limit hit because we start off with our entry price being abnormally high or low (high when selling, low when buying).

Example trade: EURUSD shows negative histogram on 1m chart. We buy EURUSD and set a limit of 50 pips gain, stop of 35 pips loss.
We can increase chances of winning greatly by looking at the larger picture (5m or 1 hour chart), then trading with the main trend. Example: EURUSD has downtrend. We wait for positive histogram to sell and then set our stop and limit.
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Re: Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:05 pm

Forum transfer: Submitted by User on January 25, 2009 - 01:21.

A screeshot here would be awesome!
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Re: Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:05 pm

Forum transfer: Submitted by Joe on January 28, 2009 - 22:07.

The positive and neg. histograms are backwards ! Also , add Full Stoch. 14 , 3 , 3 for EXITS

Joe
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Re: Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:06 pm

Forum transfer: Submitted by Claude on January 28, 2009 - 22:13.

A positive histogram is not random even on 1 min. bars , and it is a buy . Claude
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Re: Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:08 pm

Forum transfer: Submitted by Edward Revy on March 30, 2009 - 13:36.

I think All MACD v1[1].0.mq4 indicator is just right for this purpose.

Here is the screenshot with the entry, based on the strategy rules:

Take profit in +50 pips.
Stop loss in 35 pips.
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Re: Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:08 pm

Forum transfer: Submitted by suribaba on May 5, 2009 - 17:41.

great thx for Indicator, may i know what is significance of the yellow line ? and what is logic &how do you derive +50 ?
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Re: Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:09 pm

Forum transfer: Submitted by User on May 8, 2009 - 15:43.

Yellow line is simply 26 EMA. When yellow line crosses MACD histogram, we have a signal of a changing trend.

50 pips profit was suggested by the author of the system. Basically by aiming for 50 pips profit with 35 pips loss the odds are set to give a winning edge in risk:reward ratio.
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Re: Simple trading strategy: A Bet in your Favor

Postby User » Tue Jul 07, 2009 8:10 pm

Forum transfer: Submitted by rosy on June 4, 2009 - 09:27.

I think that Successful traders find a successful best forex trading strategy and stick to it. Appealing traders do not focus on the profit or loss of an individual trade. Instead, they feel successful when they identify a method that works continually. I am trading with AVAFX since long time but now they are on condition that bonus to all of them who are willing to trade with AVAFX? It is a good opportunity to take the maximum benefit, deposit $200 you will get additional of $100 into your account.
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Re: Simple trading strategy: A Bet in your Favor

Postby manus168 » Tue Sep 22, 2009 5:11 am

Very Good Strategy; actually we Sell at Bottom & Buy at Top.

Sincerly;


:wink:


Manus168
Yesterday = HISTORY !
Tomorrow = MYSTERY!
Today = GIFT !


Thats why we call it the PRESENT :)
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Re: Simple trading strategy: A Bet in your Favor

Postby gavind » Sun Mar 24, 2013 3:39 pm

Is anyone using their Auto Trader platform this year yet? Is it really that effective in getting passive income? Image
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